LMA highlights update on CME Term SOFR reference rates

Article summary

Following previous commentary published by the Loan Market Association (LMA) on the Secured Overnight Financing Rate (SOFR) exposure draft, it has highlighted the upcoming publication of CME Term SOFR reference rates, by CME Group, which have been endorsed by the US Alternative Reference Rates Committee (ARRC) in line with the ARRC's limited scope of use for such SOFR term rates. The principle of a use licence is not dissimilar to ICE Benchmark Administration (IBA) LIBOR licensing.